Mr. David Bibby reports

HYPERCHARGE ISSUES CLARIFYING NEWS RELEASE AND ANNOUNCES AMENDED AND RESTATED MD&A

As a result of a review by the British Columbia Securities Commission, and in furtherance of Hypercharge Networks Corp.'s continuing commitment to good corporate governance, the company wishes to clarify certain disclosure and recent statements made by or on behalf of the company.

The company would like to clarify its disclosure and retract certain statements that were contained in the company's investor presentation, available on its website and that were included in certain investor relations materials published for and on behalf of the company between April 1, 2023, and April 10, 2023.

In particular, the disclosure materials included the following statements:

• A statement that the company anticipates an annual growth trajectory of 200 per cent in charging ports sold in calendar year 2023;
• A statement that the company anticipates an annual growth trajectory of 300 per cent in total revenue in calendar year 2023.

In some of the disclosure materials, the statements may have been presented as a financial outlook, as defined in National Instrument 51-102 -- Continuous Disclosure Obligations, whereas the company intended such growth trajectories to only represent the company's goals for 2023. Further, the disclosure materials did not include a discussion of the material factors and assumptions used to develop the statements, as required by NI 51-102.

The company hereby retracts the statements contained in the disclosure materials and advises that the statements should not be relied upon by any member of the public for any purpose. The company has requested the removal of all investor relations materials published for and on behalf of the company since April 1, 2023. The company has also published a revised presentation on its website which no longer includes the statements.

In light of this, the company wishes to provide an update on its operations and to clarify certain of its goals for calendar year 2023.

1. Increasing sales orders: In calendar year 2022, the company signed sales contracts for 1,491 charging ports, and in the second, third and fourth quarters, quarter-over-quarter growth in the number of charging port sales orders was 192 per cent, 145 per cent and 374 per cent, respectively. The company is aiming to continue this growth in 2023. To that end, the company is focused on expanding its presence in Canada, where it has sold charging stations in eight provinces, and the United States where it has signed sales contracts for charging stations in six states. These initiatives are also supported by 45-per-cent growth in the company's headcount since December, 2022, and the company's intention to add another nine full-time hires in 2023, which will include sales, marketing and operations personnel to expand in Canada and open new markets in the U.S.
2. Increasing revenues: In accordance with international financial reporting standard (IFRS) 15, the company recognizes revenue from sales contracts with customers upon delivery of charging ports, at which point the company's performance obligation is satisfied. The company intends to increase its revenues in 2023 by (i) increasing the number of charging port sales orders (as discussed herein), and (ii) improving its fulfilment rate with respect to such sales orders. In 2022, of the 1,491 ports ordered by its customers under sales contracts, the company delivered 500, generating total revenues of $1.7-million (unaudited). This represented a fulfilment rate of 34 per cent on the total number of ports ordered in 2022 and average unit revenue of approximately $3,450 per port, based on the company's historical product mix. In 2023, the company hopes to increase its average quarterly fulfilment rate on charging ports ordered through support from new personnel, reduced supply chain disruptions and by drawing on operational efficiencies the company has achieved since 2022.

The discussion herein is intended to provide readers with a better understanding of the company's growth ambitions; however the statements are inherently uncertain and actual results may differ materially from those discussed herein due to numerous known and unknown risks, and such statements should therefore not be construed as guidance. The company's ability to achieve its goals discussed above is subject to, among other things, the company securing new contracts with new and/or existing customers, the company increasing the number of customers and/or the size of the company's contracts with its customers, the continued availability to the company's customers of government incentives for the installation of EV (electric vehicle) infrastructure, and the company being able to identify and hire qualified new team members, including sales personnel in the United States and Canada, none of which can be guaranteed.

In addition to the preceding, the company would also like to clarify certain of its recent disclosures with respect to its contracts with PCI Developments (748 charging ports) and the Lark Group of Companies (128 charging ports), which were announced by the company on March 29 and March 31, 2023, respectively. The company expects to begin phased delivery to PCI Developments' King George Hub development in spring 2024, with completion estimated in November, 2024, and to recognize the associated revenues from that agreement over that time. The company expects to deliver all charging stations under its agreement with Lark Group in February, 2024, and to recognize the associated revenue at that time. The company's contracts with PCI Developments and the Lark Group are illustrative of the lag between the date on which the company enters into a sales contract with its customers and the time the chargers are delivered and revenue recognized, which can range from immediate fulfilment up to a year or more, depending on the specific project.

Amended and restated MD&A

The company also announces that it has amended and refiled its interim management discussion and analysis (the amended MD&A) for the four months ended Dec. 31, 2022. A summary of the material changes is included herein.

The amended MD&A (i) includes a more comprehensive discussion of the company's acquisition of CoSource Information Technology Services Inc. and a description of CoSource's "plug and charge" proprietary software; (ii) includes a description of the goodwill impairment of approximately $2.1-million in connection with the company's acquisition of Spark Charging Solutions Inc.; (iii) includes a comparison of disclosure previously made by the company about its expected use of proceeds and the company's actual use of proceeds, as well as an explanation of variations therein; (iv) includes a qualitative discussion of the variations between financial quarters; and (v) identifies the specific related parties with whom the company has entered into transactions.

This enhanced disclosure in the amended MD&A is aimed to provide the reader with a broader understanding of the company's business and highlights its continuing commitment to good corporate governance, accountability, and transparency to its customers and shareholders, and is representative of the company's core values of trust, commitment, innovation and collaboration.

About Hypercharge Networks Corp.

Hypercharge Networks is a leading provider of smart electric vehicle (EV) charging solutions that offers turnkey technology to multiunit residential and commercial buildings, fleet operations and other rapidly growing sectors. Driven by its mission to accelerate EV adoption and enable the shift toward a carbon neutral economy, Hypercharge is committed to providing seamless, simple charging solutions by offering industry-leading equipment and a robust network of public and private charging stations.

We seek Safe Harbor.